Disclosure: The author has a short position in one or more of the shares mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
I am glad to say that the steely glare of reality has alighted on a few stocks this week that should be familiar to readers of this site.
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Comments
Paul Scott
Hi Lucian,
I agree with most of your article, but am not so sure on Mothercare. I was also short of the shares a little while ago, but the last set of results were not that bad.
Yes it has a weak Bal Sheet, and lots of problems with UK leases. However, it has a successful overseas operation, which is where the value is. So I think the business might well survive if they can stabilise the UK side of things. It needs an injection of fresh equity, but as we saw with Volex in June, struggling businesses can spin a good yarn and get investors to cough up more money.
Cheers, Paul.